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Tag: rights issue

  • Lafarge Africa to sell N89.21b rights issue at N12 per share

    The board of Lafarge Africa Plc yesterday announced that the company will be raising N89.21 billion in new equity funds through a rights issue at N12 per share.

    Lafarge Africa’s share price dropped by 4.48 per cent or 60 kobo to N12.80 per share yesterday at the Nigerian Stock Exchange (NSE).

    The rights price represents a discount of 10.45 per cent on the company’s traded closing price as at Monday, December 3, 2018.

    The rights issue will be pre-allotted on the basis of six new ordinary shares of 50 kobo each for every seven ordinary shares of 50 kobo held as at the qualification date. The decisions were reached at the emergency board meeting held on Monday.

    According to the company, the regulatory approval process is ongoing.

    The latest capital raising is Lafarge Africa’s second issue in 14 months. Lafarge Africa had sold its November 2017’s rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share.

    The new rights issue will also be structured like the November 2017 rights issue, including a convertible deal that allows the majority core investor- LafargeHolcim, to convert its debts to equities.

    At a recent extraordinary general meeting in Lagos, shareholders had approved resolutions authorising the company to create additional 10 billion ordinary shares of 50 kobo each to increase its authorised share capital to 20 billion ordinary shares.

    Shareholders also authorised the board of the company to raise capital of N90 billion by way of a rights issue of ordinary shares to its shareholders  and that the rights issue be executed at such price, time, for such period and on such other terms and conditions as the directors may deem fit.

    Also, the meeting granted the board the authority to apply any convertible loan, shareholder loan or any other loan facility due to any person, from the company, as may be agreed by the person and the company, towards payment for any shares or rights subscribed for in the rights issue.

    Shareholders also authorised the company to enter into a related party transaction to accept loan facility from LafargeHolcim, the foreign majority core investor which holds 76.32 per cent equity stake.

    Chairman, Lafarge Africa Plc, Mr Mobolaji Balogun, said the additional capital to be raised will further help to deleverage the company’s balance sheet and provide head room for the expansion of its business.

    He said the company foresees a stable pricing environment and favourable economic conditions in its Nigeria market while its South Africa operations are undergoing a turnaround plan.

    Chief Executive Officer, Lafarge Africa Plc, Mr. Michel Puchercos said the company’s refinancing plan is aimed at preparing for future development in Nigeria by improving the company’s leverage as well as strengthening its profitability.

     

     

  • Mutual Benefits to raise N2b through rights issue

    Mutual Benefits Assurance Plc has secured Securities and Exchange Commission’s (SEC’s) approval to proceed with plans to raise N2 billion through right issue towards its five-year strategy plan.

    The Assurance firm will be selling shares to existing shareholders by way of rights issue of 4,000,000,000 ordinary shares of 50 kobo each at 50 kobo per share on the basis of one new ordinary shares.

    Shareholders of the company have approved the Board of Directors’ proposal to raise additional equity at an Annual General Meeting (AGM) in Ibadan.

    Acceptance list for the rights issue opens on Monday, 6, August 2018 and will close on Friday 14, September 2018. The Rights being offered are tradable on the floor of The Nigerian Stock Exchange (NSE) for the duration of the Issue. The company also held its completion board meeting shortly after the AGM in Ibadan.

    Speaking at the board meeting, its Chairman, Dr. Akin Ogunbiyi said the proceeds of the offer will be used to fund the company’s recapitalisation and growth plan, provision of additional working capital and financing the expansion of IT facilities to support its enlarged operations.

    He further stated that the company’s financial performance for full year ended 31, December 2017, showed that topline growth was combined with prudent management of expenses, which resulted in a 224.9 per cent growth in profit before tax to N1.34 billion in 2017 from a loss position of N1.1 billion in 2016.

    He said: “The Group’s total assets grew by 12.1 per cent from N51.5 billion in 2016 to N57.7billion in 2017. Gross premium written also appreciated by 16 per cent, from N12.14 billion in 2016 to N14.03 billion while underwriting income also grew by 10 per cent to N11.78 billion in 2017 versus the 2016 figure of N10.70 billion.

    “Net claims paid by the Group in 2017 stood at N5.15 billion from N3.35 billion in 2016, resulting in a 54 per cent increase from the previous year,” he added.

     

  • Flour Mills opens application for N39.9b rights issue

    Flour Mills of Nigeria Plc will today open application list for its N39.9 billion rights issue, paving the way for shareholders to pick up their rights, or trade such rights at the stock market.

    Flour Mills of Nigeria will be raising N39.85 billion through a rights issue of 1.476 billion ordinary shares of 50 kobo each at N27 per share. The rights have been pre-allotted to shareholders on the basis of nine new ordinary shares of 50 kobo each for every 16 ordinary shares of 50 kobo each held as at Friday December 8, 2017. Application list for the rights opens today and will run till the close of business on Wednesday February 21, 2018.

    Group Managing Director, Flour Mills of Nigeria Plc, Mr. Paul Gbedebo, said the rights issue will enable the company to raise funds to support its long-term strategic plan with a view to ensuring sustainable growth for the company.

    “The rights issue is part of our strategy to grow and build long-term value for all stakeholders. The proceeds from the rights issue will be used to strengthen the company’s capital base by deleveraging our balance sheet, supporting our working capital needs and positioning the company to exploit value-accretive opportunities, whilst giving greater operational and financial flexibility to ensure business growth and continuity,” Gbedebo said.

    He noted that Flour Mills has a long and rich history in Nigeria and continues to evolve into becoming the leading food and agro-allied group in Africa.

    According to him, Flour Mills’ commitment to sustainability as a corporate strategy is shown in different levels of its operations and activities, while the company’s customer-centric culture remains focused on both product and process innovation aimed at building value for all stakeholders.

    Chairman, Flour Mills of Nigeria (FMN) Plc, Mr. John Coumantaros, in a recent review, noted that though the operating environment has been tough and challenging, the group can look to the future with confidence that its prospects are promising and bright while the fundamentals are strong.

    According to him, the group sees opportunities in the challenges and it is determined to explore them in the most profitable but sustainable manner.

    “FMN is determined to continue to feed the nation every day. We shall keep maintaining our wide portfolio of high quality consumer food options and step up our input of locally sourced raw materials thereby supporting the livelihood of Nigerian farmers and Nigerian businesses,” Coumantaros said.

  • Flour Mills to open application for N39.9b rights issue

    Flour Mills of Nigeria Plc has rounded off pre-offer processes and signed off documentation for its N39.9 billion rights issue, setting the stage for the opening of the application list for the new capital raising.

    At the signing ceremony, which rounded off the pre-offer processes and documentations at the weekend, Flour Mills of Nigeria Plc Group Managing Director,  Mr. Paul Gbedebo, confirmed that the company has received regulatory approvals from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) and is ready to proceed with the rights issue.

    He said the rights issue will enable the company raise funds to support its long-term strategic plan with a view to ensuring sustainable growth for the company.

    The company plans to raise N39.85 billion through a rights issue of 1.476 billion ordinary shares of 50 kobo each at N27 per share. The rights will be pre-allotted to shareholders on the basis of nine new ordinary shares of 50 kobo each for every 16 ordinary shares of 50 kobo each held as at Friday December 8, 2017.

    Shareholders had at an extraordinary general meeting in 2015 authorised the directors to raise up to N40 billion of additional equity funds through a rights issue.

    “The rights issue is part of our strategy to grow and build long-term value for all stakeholders. The proceeds from the rights issue will be used to strengthen the company’s capital base by deleveraging our balance sheet, supporting our working capital needs and positioning the company to exploit value-accretive opportunities, while giving greater operational and financial flexibility to ensure business growth and continuity,” Gbedebo said.

    He noted that Flour Mills has a long and rich history in Nigeria and continues to evolve into becoming the leading food and agro-allied group in Africa.

    According to him, Flour Mills’ commitment to sustainability as a corporate strategy is shown in different levels of its operations and activities, while the company’s customer-centric culture remains focused on both product and process innovation aimed at building value for all stakeholders.

    In a statement at the weekend, its Company Secretary, Umolu Joseph, said the full terms of the rights issue will be set out in a rights circular to be mailed directly to shareholders of the company, which contains a provisional allotment letter and participation form.

    Chairman, Flour Mills of Nigeria (FMN) Plc, Mr. John Coumantaros, in a recent review, noted that though the operating environment has been tough and challenging, the group can look to the future with confidence that its prospects are promising and bright while the fundamentals are strong.

    According to him, the group sees opportunities in the challenges and  is determined to explore them in the most profitable but sustainable manner.

    “FMN is determined to continue to feed the nation every day. We shall keep maintaining our wide portfolio of high quality consumer food options and step up our input of locally sourced raw materials, thereby supporting the livelihood of Nigerian farmers and Nigerian businesses,” Coumantaros said.

    He added that the group would continue to invest in growing portfolio of localised products in support of the nation’s economy.

    He outlined that as the group strives to further restructure its operations, streamline business operations to focus on core businesses, constantly monitor and manage costs optimally, improve and re-engineer existing product range, the group will focus on innovation and develop new strategies for the market by making its products more visible and available at points of sale.

    “We shall also continue to improve our sales, merchandising, redistribution personnel and activities,” Coumantaros said.

    He reiterated the support of the group for the Federal Government’s backward integration policy, assuring that the group is determined to ensure that its agro-allied strategy provides sustainable returns on capital invested by maximising local content in group products.

    He noted that in furtherance of the group’s vision to be involved at all stages of food value chain- from the farm to table, raw materials are being produced locally to ensure that good quality but fair value products are developed locally through the food supply chain to final consumer consumption.

    “By our policy of aggregating grains and local farm products, we are creating jobs and boosting rural economy. We are determined to continue to ensure that our investments and processes aside from ensuring value for shareholders and other stakeholders continue to enrich the lives of our consumers, farmers, suppliers and other relevant stakeholders,” Coumantaros said.

    He pointed out that by investing in the nation’s agricultural food-chain, the group is safeguarding its future and ensuring the sustainability of its businesses, noting that the backward integration programme is the most viable and sustainable thing to do.

  • Morison Industries closes application for N502.2m rights issue

    Morison Industries Plc at the weekend closed the application list for its rights issue. The company had launched a new capital raising for about N502.2 million in new equity funds through new share sale to existing shareholders.

    Morison Industries offered a rights issue of 836.98 million ordinary shares of 50 Kobo each at 60 Kobo per share on the basis of 11 new ordinary shares for every two ordinary shares of 50 Kobo held as at August 25, 2017.

    The board of directors of the healthcare company had appointed GTI Securities Limited as the stockbroker to handle the supplementary share issuance while GTI Capital Limited will be the issuing house. Both GTI Securities and GTI Capital are members of the GTI Capital Group, a leading financial services group, which owns the largest private trading floor in the Sub Saharan Africa (SSA).

    Morison Investment Limited, United Kingdom (UK), holds 40 per cent equity in Morison Industries while Nigerian investors hold the remaining 60 per cent. Morison Industries was incorporated in Nigeria in June 1955.

    Morison Industries is engaged in the production and marketing of pharmaceuticals, hygiene products and the importation and distribution of medical, surgical and hospital equipment, instruments and consumables.

    The company also provides its production facilities to third party for contract manufacturing arrangements.

  • UACN to close application for N15.4b rights issue Friday

    Nigeria’s largest and oldest conglomerate, UAC of Nigeria (UACN) Plc is scheduled to close the application list for its ongoing N15.4 billion rights issue this Friday, giving shareholders some 48 hours to pick their rights.

    UACN is raising N15.36 billion through a rights issue of 960.43 million ordinary shares of 50 kobo each at N16 per share. The new shares have been pre-allotted to existing shareholders on the basis of one new share for every two shares held as at the close of business on Thursday October 19, 2017.

    The application list for the rights issue opened on November 15, 2017 and it is scheduled to close on Friday December 22, 2017. There are indications the conglomerate may not extend the offer period.

    After deduction of the estimated issue costs and expenses of N333.91 million, representing 2.2 per cent of the gross issue proceeds, the net issue proceeds is about N15.033 billion.

    A breakdown of the utilisation of the net proceeds indicated that the largest chunk of the net proceeds of N15.03 billion will be invested in the Plateau State-based subsidiary-Grand Cereals Limited.

    The board noted that due to increasing cost of raw materials and the planned investment by Grand Cereals Limited into the agricultural value chain, it has identified the need for equity injection into the subsidiary.

    The planned N7 billion rights issue of Grand Cereals will be subscribed to by UACN to the extent of its 64.9 per cent holding in addition to any unsubscribed units. The total amount of proceeds to be used for this investment is approximately N5 billion.

    Also, to further support Grand Cereals Limited’s expansion plans into the agricultural value chain, the board has identified the need for a shareholder loan of N3.5 billion to the subsidiary. However, the planned shareholder loan will be provided on commercial terms to Grand Cereals Limited and upon repayment at a future date will be deployed in the food and agro-processing categories of the group to enhance shareholder value.

    About N4.8 billion will also be used to support the working capital of both the Grand Cereals Limited and Livestock Feeds Plc by part-financing inventory procurement during harvest season of grains and oil seeds. About N2.8 billion will be used for Grand Cereals Limited while N1.2 billion will be devoted to Livestock Feeds.

    According to the conglomerate, the harvest season of grains and oil seeds usually starts in the last quarter of every year when the financial institutions typically adopt tight credit policies to achieve their audited balance sheet goals. The availability of the required funds in a timely manner at that particular time is a competitive imperative. The raw materials will be utilised in the course of the year by the two subsidiaries. Also, the transaction between UACN and the agro-processing subsidiaries will be on commercial terms and at arm’s length.

    The conglomerate has also indicated that it would consider new acquisitions and mergers to further optimise the values of its existing businesses and take advantage of emerging opportunities in other sectors.

    In a circular outlining the operational philosophy of the conglomerate and the purposes of the ongoing new capital raising, the board of directors of the conglomerate stated that it would “continue to explore merger and acquisition opportunities relevant to it businesses”.

    The board of the conglomerate indicated it has earmarked N2.5 billion from the net proceeds of the ongoing rights issue for “product innovation and growth investment in existing markets and adjacent categories”.

    According to the board, it is conscious of the fact that the recent economic downturn presents an opportunity for product innovation and growth investment in existing markets and adjacent categories.

    “Management has been mandated to explore such value-optimising opportunities for investment consideration. The sum of N2.5 billion has been earmarked for this endeavour,” the company stated.

    Nigeria’s oldest surviving business, UACN started business in Nigeria in 1879, well ahead of the 1914 amalgamation that created the current Nigerian nation. With 10 subsidiaries in key sectors of the Nigerian economy, the UACN Group consists of several active companies spreading through manufacturing, services, logistics and real estate sectors of the Nigerian economy. These include four quoted subsidiaries-CAP Plc, UACN Property Development Company (UPDC) Plc, Livestock Feeds and Portland Paints and Products Nigeria Plc; in addition to the parent company, UACN. UPDC Real Estate Investment Trust, which is also quoted on the NSE, is a subsidiary of UPDC.

    UACN acquired Livestock Feeds and Portland Paints in 2013. Other members of the group included UAC Foods Limited, UAC Restaurants Limited, MDS Logistics Plc, Warm Spring Waters Nigeria Limited, Grand Cereals Limited, and Unico CPFA Limited. Listed in 1974, UACN is owned by some 185,000 shareholders. No shareholder holds five per cent and above other than Stanbic Nominees Nigeria, which hold 17.86 per cent equity stake.

  • Lafarge Africa closes application for N132b rights issue

    Lafarge Africa Plc at the weekend closed application list for its N131.65 billion rights issue, rounding off the subscription to its major capital raising aimed at deleveraging its balance sheet and rebuilding a more supportive capital base.

    Lafarge Africa had on November 24, 2017 launched an offer to raise N131.65 billion through a rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share. The new shares were pre-allotted to shareholders on the basis of five new ordinary shares for every nine ordinary shares held as at the close of business on November 1, 2017. The acceptance list opened on Friday November 24, 2017 and ran till the close of business on Friday, December 15, 2017.

    LafargeHolcim, which holds the majority equity stake of 72.59 per cent in Lafarge Africa, had earlier indicated it would subscribe fully to its rights. LafargeHolcim had proposed to pick up its rights under a debt-for-equities deal that will see conversion of LafargeHolcim’s dollar-based loan to equities.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun, said the recapitalisation would help to reduce the group’s exposure to adverse foreign currency translation losses as experienced in 2016 following a 40 per cent depreciation of the Naira against the Dollar.

    In the third quarter ended September 30, 2017, Lafarge Africa’s net finance expense jumped from N7.4 billion in third quarter 2016 to N17.31 billion in 2017.

    Balogun noted that the decision of LafargeHolcim to convert existing loans into equity demonstrates the core investor’s continued belief in the Nigeria story, pointing out that the rights issue is the largest so far in the Nigerian capital market and the largest investment in a listed company by an investor.

    According to him, the rights issue will help to reduce the group’s foreign currency exposure by 50 per cent while the remaining portion of the debt, with the support from LafargeHolcim, has been refinanced and hedged for 12 months.

    Lafarge Africa ended the third quarter with a marginal recovery in profitability as significant increase in net interest expense constrained the bottom-line. Despite about 39 per cent growth in sales, Lafarge Africa ended the third quarter with a pre-tax profit of N1.08 billion.

    Key extracts of the interim report and accounts of Lafarge Africa Plc for the period ended September 30, 2017 showed that sales rose by 38.9 percent to N223.67 billion in 2017 as against N161.04 billion recorded in comparable period of 2016. Gross profit also surged from N18.11 billion in 2016 to N57.31 billion in 2017. The cement manufacturer pooled operating income of N18.40 billion in 2017 compared with operating loss of N32.97 billion in comparable period of 2016.

    However, net finance expense jumped from N7.4 billion to N17.31 billion. Profit before tax thus depressed to N1.08 billion, albeit a considerable recovery when compared with pre-tax loss of N40.37 billion in 2016. After taxes, net profit stood at N937.91 million by September 2017 compared with net loss of N37.4 billion in 2017. Earnings per share was modest at 10 kobo in 2017 compared with net loss per share of N8.27 in corresponding period of 2016.

     

  • Guinness Nigeria gets N40b as rights issue

    Guinness Nigeria Plc has secured N39.7 billion new equity funds from its  shareholders, who picked up the entire rights offered by the brewer.

    Guinness Nigeria had offered 684.49 million ordinary shares of 50 kobo each at N58 per share to existing shareholders on the basis of five new shares for every 11 shares held as at the close of business on March 15, 2017. Application list for the rights issue opened on July 24, 2017 and closed on August 30, 2017.

    Listing documents at the Nigerian Stock Exchange (NSE) showed that 684.49 million ordinary shares of 50 kobo each were added to shares outstanding in the names of Guinness Nigeria. With the listing, total issued and fully paid up shares of Guinness Nigeria has now increased from 1.5 billion shares to 2.19 billion shares.

    Diageo Plc, United Kingdom, the majority core investor in Guinness Nigeria, was expected to inject additional N21 billion in Guinness Nigeria by subscribing for its rights. The rights issue provides another window for Diageo to inject capital into the Nigerian subsidiary after the multinational backed down from its earlier proposal to acquire additional equity shares in Guinness Nigeria.

    Diageo had withdrawn from its plan to acquire additional shares of up to 15.7 per cent in Guinness Nigeria from minority shareholders citing the challenging market conditions in Nigeria. Diageo had in September 2015 announced that it was considering acquiring 15.7 per cent equity stake in Guinness Nigeria through its wholly owned subsidiary, Guinness Overseas Limited.

    Managing Director, Guinness Nigeria Plc, Peter Ndegwa, said the net proceeds of the new capital raising will support the company in executing its strategy in the context of ongoing external economic challenges.

    According to him, the rights issue will allow the company to deliver on its strategic objectives and give all its shareholders a unique opportunity to increase the number of shares they hold.

    “Our expectation is that funds raised will help mitigate the impact of increasing finance costs, optimise our balance sheet and improve the company’s financial flexibility,” Ndegwa said.

    Chairman, Guinness Nigeria Plc, Babatunde Savage, said that the supplementary new issue is part of the company’s long term plans to continue to invest in its business in Nigeria.

    “We have been here in Nigeria for 67 years and, while it has been challenging in recent times for many Nigerian businesses, we remain committed to this market as evidenced by our decision to offer this Rights Issue. We are grateful for the support that we have received from our shareholders and other stakeholders up to this point,” Savage said.

    Last year, Guinness Nigeria became the first total beverage alcohol company in Nigeria by acquiring the rights to distribute international premium spirits like Johnnie Walker whisky and Baileys liqueur in Nigeria and later commissioning a N4.7 billion spirits line for locally manufactured spirits at its Benin plant.

  • Union Bank closes application for N50b rights issue

    Union Bank of Nigeria (UBN) Plc has closed the application list for its N50 billion rights issue. The application list for the rights issue opened on September 20, 2017 and closed on Monday October 30, 2017.

    Union Bank planned to raise N49.745 billion from existing shareholders through a rights issue of 12.133 billion ordinary shares of 50 kobo each at N4.10 per share. The rights issue had been pre-allotted on the basis of five new ordinary shares of 50 kobo each for every seven ordinary shares held as at the close of business on Monday August 21, 2017.

    The net proceeds of the rights issue will be used to enhance the bank’s regulatory capital requirement, increase working capital and grow in strategic areas that correspond to emerging opportunities in Nigeria, enhance technological platforms through strategic investments in technology and digitalisation and optimise customer experience with investments in customer touch points.

    Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa, has said the new capital raising is critical to the bank’s short to medium term business objectives as the new equity funds will support the bank’s strategy to accelerate business growth and position it as a leading commercial bank in Nigeria.

    “With the commencement of the rights issue subscription, we have now officially entered a new phase of our transformation where we will be focused on accelerating business growth to deliver on our objective of becoming one of Nigeria’s leading financial institutions,” Emuwa said.

  • Union Bank plans N50b rights issue in Q2

    Union Bank plans N50b rights issue in Q2

     • Records steady growths in 2016

    Union Bank of Nigeria (UBN) Plc is concluding arrangements to float a rights issue of N50 billion this quarter as the first-generation bank moves to accelerate its business growth. The new capital raising comes against the background of steady growths in key performance indicators of the commercial bank in 2016.
    Chief Executive Officer of the bank, Mr. Emeka Emuwa, at the weekend stated that the bank would launch rights issue in the second quarter of 2017 to raise up to N50 billion in Tier 1 capital, following earlier approval of the issue by the bank’s shareholders.
    According to him, the new equity funds would support the bank’s efforts to accelerate business growth and reposition itself as a leading commercial bank in Nigeria. The additional funding will also allow Union Bank to maintain compliance with regulatory capital requirements.
    He outlined that the bank had in 2016 focused on executing its priorities across the different business segments, especially in the retail space, with an aggressive strategy to increase adoption of its alternate channels.
    He pointed out that the success in this area, along with improved core interest earnings, contributed to pre-tax profit growth of six per cent in 2016.
    He added that the bank’s research-led product development strategy, coupled with an upskilled sales force and targeted marketing campaigns, propelled customer deposit base by 15 per cent with a 73 per cent increase in new-to-bank customers.
    “While the operating environment remains a challenge, we are focused on our 2017 priorities which include raising Tier 1 capital to execute our growth agenda across our retail, commercial and corporate businesses, particularly transaction banking and value chain,” Emuwa said.
    He noted that the bankank will celebrate its centenary in 2017 under three broad themes of celebrate, impact and lead.
    “Our 100th anniversary presents a unique opportunity for Union Bank to frame its own story, highlighting our many successes over the last century and presenting our simpler, smarter vision of banking and corporate citizenship to a new generation of customers,” Emuwa said.
    Key extracts of the audited report and accounts of Union Bank of Nigeria (UBN) Plc for the year ended December 31, 2016 released at the weekend showed that gross earnings rose by 8.0 per cent from N117.2 billion in 2015 to N126.6 billion in 2016. Profit before tax also rose from N14.9 billion in 2015 to N15.7 billion in 2016. Interest income had grown from N90.9 billion to N98.0 billion, driven by loan book growth and improved bank asset yields. Also, interest expense declined by six per cent from N35.2 billion to N33 billion as improved customer funding base and less reliance on expensive interbank funding led to drop in core cost of funds to 5.23 per cent in 2016 as against 6.64 per cent in 2015.
    The balance sheet saw a 38 per cent growth in gross loans from N388.8 billion in 2015 to N535.8 billion in 2016, with 25 per cent of the growth, resulting from impact of devaluation on foreign currency loans. Customer deposits grew by 15 per cent from N570.6 billion to N658.4 billion, driven mainly by new product offerings, increased market penetration and improved customer offtake. Total assets rose by 12 per cent to N1.12 trillion in 2016 as against N1.0 trillion in 2015.

    Emuwa noted that the performance of the bank was driven by expanded retail product portfolio with the launch of five new products as well as accelerated customer on-boarding on the bank’s mobile and internet banking following the launch of new platforms with expanded capabilities in 2016.
    Chief financial officer, Union Bank of Nigeria (UBN), Oyinkan Adewale, said the group continued to drive cost optimisation, with cost-income-ratio declining to 66.2 per cent in 2016 from 70.7 per cent in 2015, notwithstanding a high inflation environment.
    “We will continue to focus on optimising cost in 2017. As we look to raise additional capital to execute business priorities, we will maintain our prudent approach to growing our risk assets while aggressively growing low cost deposits,” Adewale said.
    Adewale also noted that on the back of strong customer deposits, the bank reduced average interbank local currency borrowing by 75 per cent, leading to 141 basis points reduction in primary cost of funds and 17 per cent increase in net interest income.